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Which of the following business forms that exist in Canada are subject to doubleAssume you...

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Accounting

Which of the following business forms that exist in Canada are subject to doubleAssume you believe in the Liquidity Preference Theory of the Term Structure of
Interest Rates. What does this theory imply if f3=4%?
A) It implies that the expected future spot rate for a one year loan starting in 2
periods and ending in 3 periods from now will be 4%.
B) It implies that the expected future spot rate for a one year loan starting in 2
periods and ending in 3 periods from now will be less than 4%.
C) It implies that the expected future spot rate for a one year loan starting in 2
periods and ending in 3 periods from now will be greater than 4%.
D) It implies that the expected future spot rate for a one year loan starting in 3
period and ending in 4 periods from now will be greater than 4%.
E) It implies that the expected future spot rate for a one year loan starting in 3
period and ending in 4 periods from now will be 4%.
F) It implies that the expected future spot rate for a one year loan starting in 3
period and ending in 4 periods from now will be less than 4%
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